Results of Reliance Industries, Axis Bank and Indusind Bank - Should you buy these stocks ?

 Quarter 2 Results of most of the companies are coming day by day , but most significant of them is that of Reliance Industries - the highest market cap of All Indian listed stock.

Result of RIL has been above expectations even though GRM has fallen but other growing avenues such as Telecom and Retail has given excellent contribution on its growth as well as margin front.

So our Research gives a Buy Call on Reliance Industries with target of 2350 in 3 months time from the current level of 2050 resulting in upside gain of 10% in three month period which is excellent which excludes any dividend if any declared by the company in the intervening period.

Our Second Analysis is on both Axis as well as Inusind Bank , although both the banks have shown decline in the profit but the undercurrent is very good in both these new generation private sector bank as they are poised to grow at excellent level from next year onwards people who are having 2 to 3 years time frame should definitely buy both these stock with following targets.

Axis Bank , Current Price INR 490 to 950 in 2 years time gain of almost 100% in two years time.

Indusind Bank , Current Price INR 585 we are expecting it to touch the levels of 1600 in 3 years time resulting in gain of 150% in three year time frame.

Do keep visiting for the research and analysis and investment tips on our blog

Any query do post in comment section.

Again Alleged Fraud by Top Private Banks for Loans

 

Two of the country top new generation private sector banks Axis Bank and Kotak Mahindra Bank have complaint of alleged fraud to the tune of INR 1200 Crores against travel and leisure company Cox & Kings Limited.

The investigation has been started by Economic Offense Wing of Mumbai City Police but officials of the travel firm say that its an routine inquiry.

The preliminary enquiry was already registered against the company on the basis of complaint from a third bank that is Indusind Bank which has alleged a default in payment of INR 239 Crores.

Now Kotak Bank in its complaint, stated that it has been extending financial faciliteis to the travel fir since 2012, and on June 24 , 2019 outstanding amount stood at INR 175 Crores.

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After default Bank appointed PWC ( Price-Water-House-Coopers ) to do a forensic audit. Its two draft report and mentioned irregularities and fraudulent practices of some of oice beares of the travel company.

The first draft interim report also said that there was receivable of INR 450 Crores from 15 parties and all these transactions were suspicious in nature and that the bank had all reason to believe they were fictitious. These 15 parties had common and on teh same day in the travel firm's system in August 2012, the police said. ON a visit to the addresses, it was found that the parties were not located there. Kotak Mahindra Bank said it has incurred a loss of 175 Crores.

As for Axis Bank it submitted a complaint that some office-bearers of the travel firm and its sister concerns had availed loan facilities to the tune of INR 1030 Crores and cheated the bank by not repaying. In both cases, FIRs are yet to be registered.

The the investigation & probe is being supervised by chief of EOW Mr Rajvardhan Sindha, and headed by inspector Kishore Parad who led the Punjab & Maharashtra Bank,s Rs 4700 Crores con probe.

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Our Analysis and Questions :

1. Why every time if any NPA happens then bank declare the NPA account as fraud.

2. It was more prevalent with Public Sector Banks in India now we are seeing Private Banks also following the same footstep. Can it be the end of dream run for Private Banks by charging higher interest on riskier assets.

3. Why not during the annual assessment bank could not see the amount was going into bogous / shell companies ?

4. What was banks Internal and External auditors doing with their inspection of the said loan ?

5. In all we can say that , if borrowers not giving back the loan then make them as fraud. The story is same with both Public Sector banks and Private sector banks as they banks do not want to take blame on their top management for NPA of the accounts .

6. Your comments & discussions are awaited.

Trade Calls for 23 September 2014

• Buy Axis Bank in cash around 400 for target of 415 in 2-3 days
• Buy Axis Bank Call September strike price 410 around 1 for target of 2 by tomorrow
• Buy SBI around 2560 in cash for target of 2680 in a week time
• Buy SBI 2600 Call around 12 strike price 2600 September series for target of 24 tomorrow
• Sell ITC aorund 374 for target of 360 in 2 week time
• Buy ITC 365 PUT October series around 4.3 for target of 9 in two week time

Sell Axis Bank for Target of

• Sell Axis Bank Futures around 406.7 for target of 405 Intraday and 397 by Friday
• Alternatively buy Axis Bank 380 PUT September 2014 Expiry around 3.5 for target of 6 by Friday
• Buy IDFC 140 PUT September Series around 2.75 for target of 4 in 2-3 days